An external auditor has cleared Zurich-based Hyposwiss Private Bank of accusations of money laundering deriving from a conflict between two Russian businessmen over the control of Norilsk Nickel, the mining giant.

The private bank, a subsidiary of the Cantonal Bank of St Gallen, went to PwC after a series of accusations had been aired in Swiss media. PwC examined the bank’s records between 1 July 2010 and 31 October 2011 and found no evidence of money laundering.

The Swiss Attorney General also declined to open a criminal case against the bank in November.

The accusation made by Russian billionaire Oleg Deripaska was directed against director Hans Bodmer, who resigned from the bank’s board last month. One of the rumours circulating was that Bodmer had helped steal $1 billion from Norilsk Nickel.

“With his resignation, Bodmer would like to permit a clarification of the facts of the current allegations against him, without harming Hyposwiss Private Bank,” the bank’s parent said at the time of his departure.

“We do not know what the next step is, but in view of the intensity of the conflict surrounding Norilsk Nickel, further pressure on the law enforcement authorities cannot be ruled out,” a spokesperson for the bank told WealthBriefing.

The spokesperson said that the bank is unconcerned about that possibility, given the results of the PwC examination. "This investigation showed that we were correct, and we have also carried out an internal legal investigation without finding any wrongdoings," he said.

It is not the first time Bodmer stands accused of money laundering. In 2004, he pleaded guilty in a New York federal court and testified subsequently at a 2009 bribery trial when working for Hyposwiss. When reappointed to the board in July this year, Bodmer’s lawyer said that the case did not involve any violation of Swiss law.

According to the US indictment in the case, Bodmer used “his position as a member of the board of directors of Hyposwiss Bank” to route payments to government officials in Azerbaijan.